finance general - seattle · 2020. 10. 2. · finance general description of incremental budget...

Finance General

Ben Noble, Director

(206) 615-1962

http://www.seattle.gov/financedepartment/

Department Overview

Finance General is controlled by the City Budget Office and provides a mechanism for allocating General Fund and other central resources to reserve and bond redemption funds, City departments, and certain programs where the City Council, Mayor, or City Budget Office need additional oversight.

Budget Snapshot

2019 Actuals

2020 Adopted

2021 Proposed

Department Support

General Fund Support 207,806,840 256,309,722 294,903,485 Other Funding - Operating 10,465,768 11,929,493 86,044,809

Total Operations 218,272,608 268,239,215 380,948,294

Total Appropriations 218,272,608 268,239,215 380,948,294

Budget Overview

Finance General serves as a central repository for ongoing City costs; including General Fund contributions to the operations of City departments, debt service payments made from centrally-managed Funds and contributions to outside organizations. It also provides a mechanism to hold appropriations temporarily until the City determines the appropriate managing department; to act as a contingency reserve to respond to unpredictable situations; and, to cover costs that vary with economic conditions.

In the 2021 Proposed Budget, Finance General is the mechanism to transfer General Fund resources to the below departments:

• Office of Arts and Culture; • Seattle Public Library; • Office of Labor Standards; • Police Pension; • Fire Pension; • Finance and Administrative Services; • Information Technology;

City of Seattle - 2021 Proposed Budget - 567 -

http://www.seattle.gov/financedepartment/

Finance General

Incremental Budget Changes

Finance General

Dollars FTE 2020 Adopted Budget 268,239,215 -

Baseline

Adjustment for One-Time Budget Changes (40,325,850) - Citywide Adjustments for Standard Cost Changes (10,902,359) -

Proposed Operating

Equitable Communities Initiative 100,000,000 - Joint COVID-19 Relief Plan 5,000,000 - Insurance Premium Increase 2,900,000 - Teleworking Stipend Reserve 570,000 - Reduce High Barrier Reserve (362,500) -

Proposed Technical

Revenue Update - - Update Reserves for Recurring Expenses (8,806,738) - Temporary Hiatus of Reserve Transfer (4,929,960) - Provide General Fund Support to Department Programs (4,756,309) - Remove Seattle Storm Relocation Reserve (2,600,000) - Reduce General Fund Support to FAS for Encampment Clean-Up (1,313,229) - Reduce General Fund Support to IT Department (750,000) - Increase Transfer to FAS for OEM Accounting and Administrative Support 85,000 - Adjust Debt Service Payments 1,151,024 - Transfer REET II to Low Income Housing Fund 5,000,000 - Transfer Emergency Funds into General Fund for Joint COVID-19 Relief Plan 20,750,000 - Fund Balancing Entry - - Transfer Revenue Stabilization and Emergency Funds into General Fund 52,000,000 -

Total Incremental Changes

$112,709,079 -

Total 2021 Proposed Budget $380,948,294 -


Finance General

Description of Incremental Budget Changes

Baseline

Adjustment for One-Time Budget Changes Expenditures $(40,325,850)

Revenues $(28,642,267)

In Finance General, this adjustment reverses many one-time transfers and reserves which were established in the 2020 Adopted Budget by both the Mayor and the City Council. These are technical items which were never intended to carry into the 2021 Budget.

Citywide Adjustments for Standard Cost Changes Expenditures $(10,902,359)

Citywide technical adjustments made in the baseline phase reflect changes to internal services costs, including rates from the Department of Finance & Administrative Services, Seattle Information Technology Department, Seattle Department of Human Resources, and for healthcare, retirement and industrial insurance charges for the department. These adjustments reflect initial assumptions about these costs and inflators early in the budget process. In addition, Finance General includes changes to the Judgement and Claims rates. The 2021 Budget returns Finance General Judgement and Claims payments to 2019 levels due to reallocation of costs to departments, resulting in a large decrease for Finance General.

Proposed Operating

Equitable Communities Initiative Expenditures $100,000,000

This funding is reserved for recommendations by a Community driven process, organized by a community task force planned to begin in the fall of 2020. The task force will focus on up-stream investments for Black, Indigenous, and people of color (BIPOC) communities to address disparities and make meaningful changes that can be measured by community progress. The task force will be comprised of BIPOC community leaders who will engage with community, with support from city departments. The policy and investment recommendations will focus on: • Building opportunity and an inclusive economy • Community wealth building and preserving cultural spaces • Climate justice and Green New Deal • Community wellness and safety • Other areas the task force and community determine should be prioritized The task force will have broad latitude in setting the timetable, process and agenda for their work. However, it is contemplated that by December 2020 they will identify initial areas where community thinks investments should be prioritized. The task force, centered on community input, will also determine the research, data and technical advice they need in each of those areas to create desired outcomes in each area in the years to come. The task force will not be making funding recommendations to specific organizations. The task force, based on technical support, legal requirements and desired outcomes may consider a range of funding mechanisms and programmatic structures, including participatory budgeting, grants, RFPs, and loans. These funds are anticipated to be an ongoing, annual investment. As decisions about allocations are reached, appropriations will be assigned as required by city law and procedures.


Finance General

Joint COVID-19 Relief Plan Expenditures $5,000,000

As part of the 2020 budget, the Mayor and City Council have invested $233 million in COVID-19 relief programs. To further address community needs, an additional $45 million will be invested from the City reserves and other funding sources, with approximately half appropriated in 2020 and the remainder in 2021. The investments will be distributed according to a spending plan, which includes assistance to small business, childcare, individuals experiencing homelessness or at risk of losing their home, people experiencing food insecurity, and immigrants and refugees. In Finance General, $5 million is included for 2021 to provide funding for testing costs incurred by various City departments in 2021, including facilities costs, staff time and supplies. Appropriations will be transferred from Finance General to departments once costs are incurred.

Insurance Premium Increase Expenditures $2,900,000

The item increases the appropriation for insurance premium payments made out of Finance General on behalf of the entire City. With this increment, the total 2021 Proposed Budget for insurance is $9.8 million. This change is the result of significant increases in renewal of both property and liability insurance in 2020. In both cases a combination of external market factors and the City’s recent claims history led to the increase.

Teleworking Stipend Reserve Expenditures $570,000

This item creates a reserve for a teleworking stipend which is being distributed to City of Seattle employees. This stipend is to ensure that the City is in compliance with the Wage Theft Ordinance. Funds will be distributed by departments to employees throughout the year and this reserve will be allocated to departments as reimbursement once final amounts are known.

Reduce High Barrier Reserve Expenditures $(362,500)

This change reduces the high barrier workgroup reserve. The 2020 Adopted Budget included $762,500 in ongoing funding for operations of the West Wing facility at the King County Jail, rapid reentry and case conferencing pilots. The West Wing facility is not expected to begin operations until mid-2021, and funding for operations is not needed until that time. The reentry and case conferencing pilots were not initiated given the dynamic and evolving issues around criminal justice.

Proposed Technical Revenue Update Revenues $126,082,919

This change reflects updates to baseline revenues from the August revenue forecast. Finance General includes revenue updates for the major General Fund sources (including the new payroll tax), the Short-Term Rental Tax Fund, the Sweetened Beverage Tax Fund, the Real Estate Excise Tax (REET) I and II Funds, the Emergency Fund and Revenue Stabilization Fund, Bond Funds, and the Cumulative Reserve Subfund-Unrestricted.


Finance General

Update Reserves for Recurring Expenses Expenditures $(8,806,738)

This item makes changes for updated cost projections and includes non-programmatic changes that represent the latest cost estimates for recurring expenses paid by the Finance General department. Included in this adjustment are projected payment increases for utility services funded by the General Fund (street lights and fire flow), transit pass subsidies for employees, General Fund disability claim reserves, and changes to several other small recurring payments. The large decrease in budget is due to removal of the Transportation Network Company reserve from Finance General to other departments.

Temporary Hiatus of Reserve Transfer Expenditures $(4,929,960)

Revenues $(4,929,960)

This eliminates the budget for the transfer of General Fund resources to the Emergency Fund (10102) and the Revenue Stabilization Fund (00166). Due to the pandemic and recession, the 2021 budget includes the use of the Emergency Fund and the Revenue Stabilization Fund to supplement the General Fund. When the budget calls for a use of the Revenue Stabilization Fund, SMC 5.80.020 requires that the annual contribution to the Revenue Stabilization Fund be suspended. Emergency Fund contributions are governed by internal City Policy, which was recently amended to state "In the event that a severe or long-lasting event . . . leads to deep or multiple years of spending from the fund, the City shall make contributions to satisfy the target balance as soon as is practically possible."

Provide General Fund Support to Department Programs Expenditures $(4,756,309)

This item provides the resources needed to support department operations which receive General Fund through operating transfers, including Seattle IT, Finance and Administrative Services, the Office of Labor Standards, the Seattle Public Library, Police Relief and Pension, Firefighters' Pension, and the Office of Arts and Culture. The amount is a reflection of the General Fund savings from budget reductions taken by these departments.

Remove Seattle Storm Relocation Reserve Expenditures $(2,600,000)

This item removes the reserve for the Seattle Storm relocation from Finance General in 2021. The reserve is not needed beyond 2020 because the lease agreement signed by the Seattle Arena Company (ArenaCo) and the City of Seattle stipulates that responsibility for providing a venue for the Storm will have passed from the City to ArenaCo in 2021.

Reduce General Fund Support to FAS for Encampment Clean-Up Expenditures $(1,313,229)

In the 2021 Proposed Budget, the encampment clean-up function is transferred from the Department of Finance and Administrative Services (FAS) to Seattle Public Utilities. General Fund resources to support the program were provided to the FAS Fund via a transfer from Finance General. Because Seattle Public Utilities has the General Fund budget directly in the department, this transfer is no longer needed.


Finance General

Reduce General Fund Support to IT Department Expenditures $(750,000)

This one-time item removes $750,000 of General Fund support in 2021 for the Digital Equity program in the Seattle Information Technology Department as it can now again be supported by Cable Franchise Fees in 2021. In 2020, due to anticipated declines in Cable Television Fund revenues, the General Fund replaced Cable Television Fund revenues. For 2021, however, Cable Television Fund revenues have been determined to be sufficient to cover this appropriation.

Increase Transfer to FAS for OEM Accounting and Administrative Support Expenditures $85,000

This item increases the General Fund transfer from Finance General to the Department of Finance and Administrative Services (FAS) to provide back office support for the new Office of Emergency Management and Seattle Emergency Communications Center. This is a technical change to appropriate General Fund resources for the transfer.

Adjust Debt Service Payments Expenditures $1,151,024

This adjusts Finance General debt service payments to reflect projected obligations for actual debt issuances. Included are debt service payments for Finance General from the General Fund, Real Estate Excise Tax (REET) I and REET II Funds, Short-Term Rental Tax Fund and the Cumulative Reserve Fund - Unrestricted.

Transfer REET II to Low Income Housing Fund Expenditures $5,000,000

The 2020 Adopted Budget directed the Office of Housing to commit $25 million to Multifamily capital projects which would be reimbursed by Real Estate Excise Tax (REET) II revenues in the amount of $5 million annually from 2021 through 2025. This item adds $5 million of appropriations out of the REET II fund for the transfer to the Office of Housing.

Transfer Emergency Funds into General Fund for Joint COVID-19 Relief Plan Expenditures $20,750,000

Revenues $20,750,000

As part of the 2020 budget, the Mayor and City Council have invested $233 million in COVID-19 relief programs. To further address community needs, an additional $45 million will be invested from the City reserves and other funding sources, with approximately half appropriated in 2020 and the remainder in 2021. The investments will be distributed according to a spending plan, which includes assistance to small business, childcare, individuals experiencing homelessness or at risk of losing their home, people experiencing food insecurity, and immigrants and refugees. This appropriation allows for the transfer of Emergency Fund reserves into the General Fund to support departmental COVID-19 Relief efforts in 2021.

Fund Balancing Entry Revenues $(15,886,614)

This is a technical item to balance revenues and expenditures for the Funds managed by this department.


Finance General

Transfer Revenue Stabilization and Emergency Funds into General Fund Expenditures $52,000,000

Revenues $52,000,000

This item increases appropriations out of the Emergency Fund (10102) and the Revenue Stabilization Fund (00166) and increases revenue to the General Fund to provide sufficient resources to fully balance the 2021 Proposed Budget.


Finance General

Expenditure Overview

Appropriations 2019

Actuals 2020

Adopted 2021

Proposed

FG - BO-FG-2QA00 - Appropriation to Special Funds

00100 - General Fund 169,745,404 174,881,525 149,742,526

00164 - Unrestricted Cumulative Reserve Fund

6,705,005 4,876,486 3,031,892

00166 - Revenue Stabilization Fund - - 25,700,000

10102 - Emergency Fund - - 47,050,000

12200 - Short-Term Rental Tax Fund - 2,006,419 2,010,719

30010 - REET I Capital Fund 2,302,763 1,996,588 2,930,373

30020 - REET II Capital Fund 1,000,000 - 5,321,825

36300 - 2016 Multipurpose LTGO Bond Fund

458,000 - -

Total for BSL: BO-FG-2QA00 180,211,171 183,761,018 235,787,335

FG - BO-FG-2QD00 - General Purpose

00100 - General Fund 38,061,436 81,428,197 145,160,959

00155 - Sweetened Beverage Tax Fund - 500,000 -

00164 - Unrestricted Cumulative Reserve Fund

- 2,550,000 -

Total for BSL: BO-FG-2QD00 38,061,436 84,478,197 145,160,959

Department Total 218,272,608 268,239,215 380,948,294 * FTE totals are provided for informational purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here

Budget Summary by Fund Finance General

2019 Actuals

2020 Adopted

2021 Proposed

00100 - General Fund 207,806,840 256,309,722 294,903,485 00155 - Sweetened Beverage Tax Fund - 500,000 - 00164 - Unrestricted Cumulative Reserve Fund 6,705,005 7,426,486 3,031,892 00166 - Revenue Stabilization Fund - - 25,700,000 10102 - Emergency Fund - - 47,050,000 12200 - Short-Term Rental Tax Fund - 2,006,419 2,010,719 30010 - REET I Capital Fund 2,302,763 1,996,588 2,930,373 30020 - REET II Capital Fund 1,000,000 - 5,321,825 36300 - 2016 Multipurpose LTGO Bond Fund 458,000 - - Budget Totals for FG 218,272,608 268,239,215 380,948,294


Finance General

Revenue Overview

2021 Estimated Revenues Account Code Account Name

2019 Actuals*

2020 Adopted

2021 Proposed

310000 Taxes - - 214,283,518 311010 Real & Personal Property Taxes (86,346) 278,781,000 285,749,629 311020 Sale Of Tax Title Property - 5,000 - 313010 Sales & Use Tax-Local Share - 272,162,346 218,370,791 313030 Sales & Use Tax-Brkrd Nat Gas - 1,358,153 1,296,343 313040 Sales & Use Tax-Crim Justice - 24,102,825 18,637,086 316010 B&O Tax 31,201,605 296,938,537 256,338,929 316020 B&O Tax-Admissions Rev 1,040,367 11,691,224 5,457,085 316040 B&O Tax-Admissions Surcharge 1,283 - - 316070 B&O Tax-Gas Utility 1,316,554 11,310,156 9,854,724 316080 B&O Tax-Garbage Utility 332,964 1,800,000 1,500,000 316100 B&O Tax-Cable Tv Utility 1,235,246 14,738,675 13,231,506 316110 B&O Tax-Telephone/Graph Util 1,601,280 18,419,141 15,393,255 316120 B&O Tax-Steam Utility - 1,280,842 1,160,220 316130 B&O Tax-Electric Utility - 61,149,886 53,615,662 316140 B&O Tax-Water Utility - 34,935,933 32,791,929 316150 B&O Tax-Sewer Utility - 55,419,808 59,797,084 316160 B&O Tax-Solid Waste Utility - 21,502,149 21,019,751 316180 B&O Tax-Trans Fee-In City - 2,300,000 1,750,000 316190 B&O Tax-Trans Fee-Out City - 4,334,277 4,233,022 317040 Leasehold Excise Tax Rev (398,968) 5,500,000 5,105,913 317060 Gambling Excise Tax Rev - 475,000 260,000 318110 Firearms & Ammunition Tax - 100,000 85,000 318210 Heating Oil Tax - - (89,425) 318310 Transportation Network Co Tax - - 5,022,448 321100 Bus Lic&Perm-Business Gen - 18,598,939 15,089,826 322040 Nonbus Lic&Perm-Comm Park - 2,260,000 2,260,000 322170 Nonbus Lic&Perm-Truck Overload - 260,000 260,000 322220 Nonbus Lic&Perm-Strmwtr Sewer 20,750 - - 322260 Nonbus Lic&Perm-Meter Hood

Fee - 4,500,000 4,500,000

335010 Marijuana Enforcement - 1,500,000 1,350,000 335030 Vessel Registration Fees - 125,000 125,000 335070 Criminal Justice Hi Crm - 1,900,000 2,000,000


Finance General

335080 Criminal Justice Pop - 1,000,000 1,200,000 335090 Criminal Justice Dcd #1 - 700,000 800,000 335120 Rev Sharing Dui-Cities - 115,000 100,000 335140 Liquor Excise Tax - 3,750,000 4,000,000 335150 Liquor Board Profits - 5,950,000 5,950,000 341900 General Government-Other Rev 1,012,353 1,257,180 1,435,000 348170 Isf-Itd Alloc Rev 15,716,883 - - 360020 Inv Earn-Residual Cash - 6,764,911 2,124,561 360130 Interest On Contracts/Notes Re - 450,000 375,000 360290 Parking Fees - 39,019,000 39,019,000 360390 Proceeds From Sale Of Assets 15,990,663 - - 360900 Miscellaneous Revs-Other Rev 84,015 9,766,242 889,425 395010 Sales Of Land & Buildings - 66,500,000 - 397010 Operating Transfers In 1,407,894 4,266,559 72,750,000 397200 Interfund Revenue - 750,000 - Total Revenues for: 00100 - General Fund 70,476,542 1,287,737,783 1,379,092,281

400000 Use of/Contribution to Fund Balance

- 19,343,883 (13,870,271)

Total Resources for:00100 - General Fund 70,476,542 1,307,081,666 1,365,222,010

318100 Sweetened Beverage Tax - 24,329,000 20,771,875 397010 Operating Transfers In - 4,018,000 - Total Revenues for: 00155 - Sweetened Beverage Tax Fund

- 28,347,000 20,771,875


- (1,678,574) (15,323)

Total Resources for:00155 - Sweetened Beverage Tax Fund

- 26,668,426 20,756,552

360010 Investment Interest - - (1,150,000) 360020 Inv Earn-Residual Cash - 2,200,000 2,200,000 360290 Parking Fees - 150,000 150,000 395010 Sales Of Land & Buildings - 6,865,000 2,515,000 Total Revenues for: 00164 - Unrestricted Cumulative Reserve Fund

- 9,215,000 3,715,000


- 797,317 (446,430)

Total Resources for:00164 - Unrestricted Cumulative Reserve Fund

- 10,012,317 3,268,570

397010 Operating Transfers In 7,539,451 3,007,479 1 Total Revenues for: 00166 - Revenue Stabilization Fund

7,539,451 3,007,479 1


Finance General


- (3,007,479) 25,700,000

Total Resources for:00166 - Revenue Stabilization Fund

7,539,451 - 25,700,001

397010 Operating Transfers In 1,706,916 1,922,482 - Total Revenues for: 10102 - Emergency Fund 1,706,916 1,922,482 -


- (1,922,482) 47,050,000

Total Resources for:10102 - Emergency Fund 1,706,916 - 47,050,000

317090 Short Term Rental Tax - 10,500,000 7,350,000 Total Revenues for: 12200 - Short-Term Rental Tax Fund

- 10,500,000 7,350,000


- (193,156) (179,356)

Total Resources for:12200 - Short-Term Rental Tax Fund

- 10,306,844 7,170,644

360000 Miscellaneous Revs - - 1,965,571 Total Revenues for: 20130 - LTGO Bond Interest and Redemption Fund

- - 1,965,571

311010 Real & Personal Property Taxes - 22,761,750 22,764,200 Total Revenues for: 20140 - UTGO Bond Interest Redemption Fund

- 22,761,750 22,764,200

317010 Real Estate Excise Tax Reet #1 - 41,478,871 31,204,383 Total Revenues for: 30010 - REET I Capital Fund

- 41,478,871 31,204,383


- 4,375,738 3,111,622

Total Resources for:30010 - REET I Capital Fund

- 45,854,609 34,316,005

317020 Real Estate Excise Tax Reet #2 - 41,478,871 31,204,383 Total Revenues for: 30020 - REET II Capital Fund

- 41,478,871 31,204,383


- 6,909,020 846,144

Total Resources for:30020 - REET II Capital Fund

- 48,387,891 32,050,527

397010 Operating Transfers In 458,000 - - Total Revenues for: 36500 - 2018 Multipurpose LTGO Bond Fund

458,000 - -


Finance General

391010 G.O.Bond Proceeds - 25,534,030 - Total Revenues for: 36700 - 2020 Multipurpose LTGO Bond Fund

- 25,534,030 -

391010 G.O.Bond Proceeds - 20,316,750 - Total Revenues for: 36710 - 2020 LTGO Taxable Bond Fund

- 20,316,750 -

391010 G.O.Bond Proceeds - - 61,899,481 Total Revenues for: 36800 - 2021 Multipurpose LTGO Bond Fund

- - 61,899,481


- - (8,083,000)

Total Resources for:36800 - 2021 Multipurpose LTGO Bond Fund

- - 53,816,481

391010 G.O.Bond Proceeds - - 122,837,800 Total Revenues for: 36810 - 2021 LTGO Taxable Bond Fund

- - 122,837,800


- - (70,000,000)

Total Resources for:36810 - 2021 LTGO Taxable Bond Fund

- - 52,837,800

Total FG Resources 80,180,909* 1,516,924,283 1,666,918,361 *Note that 2019 revenue for most major General Fund sources was budgeted and collected into the Department of Finance and Administrative Services. Beginning in 2020 and onwards, these revenues sources are budgeted and collected in Finance General.


Finance General

Appropriations by Budget Summary Level and Program

FG - BO-FG-2QA00 - Appropriation to Special Funds

The purpose of the Appropriation to Special Funds Budget Summary Level is to appropriate General Fund and other centrally managed resources, several of which are based upon the performance of certain City revenues, to bond redemption or special purpose funds. These appropriations are implemented as operating transfers to the funds or accounts they support.

Program Expenditures 2019 Actuals

2020 Adopted

2021 Proposed

Appropriation to Special Funds 180,211,171 183,761,018 235,787,335 Total 180,211,171 183,761,018 235,787,335

*FTE totals are provided for informational purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here

FG - BO-FG-2QD00 - General Purpose

The purpose of the General Purpose Budget Summary Level is to provide appropriation authority to those programs for which there is no single appropriate managing department, or for which there is Council and/or Mayor desire for additional budget oversight.

Program Expenditures 2019 Actuals

2020 Adopted

2021 Proposed

General Purpose - - 145,160,959 Reserves 38,061,436 84,478,197 - Total 38,061,436 84,478,197 145,160,959

*FTE totals are provided for informational purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here

The following information summarizes the programs in General Purpose Budget Summary Level:

General Purpose

The purpose of the General Purpose Budget Program is to provide appropriation authority to those programs for which there is no single appropriate managing department, or for which there is Council and/or Mayor desire for additional budget oversight.

Expenditures/FTE 2019

Actuals 2020

Adopted 2021

Proposed General Purpose - - 145,160,959

Reserves


Finance General

Expenditures/FTE 2019

Actuals 2020

Adopted 2021

Proposed Reserves 38,061,436 84,478,197 -


finance general - seattle · 2020. 10. 2. · finance general description of incremental budget...

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